What changed in this filing

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Item 1. Financial Statements

2021-08-16 compared with 2021-05-17 · 297 added, 150 removed, 464 unchanged (49% of the section changed)

3 unchanged sentences

(In thousands, except share data)

March 31, 2021

December 31, 2020

Buildings and improvements

9 unchanged sentences

Non-recourse property debt, net

Construction loans, net

Notes payable to AIR

8 unchanged sentences

149,662,549 and 149,036,263 shares issued/outstanding at

March 31, 2021 and December 31, 2020, respectively

June 30, 2021 and December 31, 2020, respectively

Additional paid-in capital

Retained earnings (Accumulated deficit)

Accumulated deficit

Total Aimco equity

6 unchanged sentences

(In thousands, except per share data)

Three Months Ended March 31,

Three Months Ended

Six Months Ended

Rental and other property revenues

6 unchanged sentences

Mezzanine investment income, net

Unrealized gains on interest rate options

Unrealized gains (losses) on interest rate options

Other expenses, net

Income before income tax benefit

(Loss) income before income tax benefit

Income tax benefit

Net (loss) income

Noncontrolling interests:

Net loss attributable to redeemable noncontrolling interest in

consolidated real estate partnership

Net (income) loss attributable to noncontrolling interests

Net (income) loss attributable to redeemable noncontrolling

interest in consolidated real estate partnership

Net (income) attributable to noncontrolling interests

in consolidated real estate partnerships

Net income attributable to common noncontrolling

Net (income) loss attributable to common noncontrolling

interests in Aimco Operating Partnership

Net income attributable to Aimco common

Net income attributable to Aimco per common share – basic

Net income attributable to Aimco per common share – diluted

Net (loss) income attributable to Aimco common

Net (loss) income attributable to Aimco per common share –

Weighted average common shares outstanding – basic

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Three Months Ended March 31, 2021 and 2020

For the Three Months Ended June 30, 2021 and 2020

(In thousands)

4 unchanged sentences

Aimco Predecessor Equity

Balances at December 31, 2019

Balances at March 31, 2020

Net income attributable to Aimco Predecessor

Net loss attributable to noncontrolling interests in consolidated partnerships

Net income attributable to noncontrolling interests in consolidated partnerships

Net income attributable to common noncontrolling interests in Aimco Operating Partnership

Contributions from Aimco Predecessor, net

Balances at June 30, 2020

Balances at March 31, 2021

Balances at December 31, 2020

Redemption of Aimco Operating Partnership units

Issuance of common stock in connection with share-based compensation arrangements

Cash paid on redemption of Aimco Operating Partnership units

Share-based compensation expense

1 unchanged sentence

Net income attributable to noncontrolling interests in consolidated partnerships

Net loss attributable to common noncontrolling interests in Aimco Operating Partnership

Net loss attributable to Aimco common stockholders

Balances at June 30, 2021

See notes to condensed consolidated financial statements.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

For the Six Months Ended June 30, 2021 and 2020

(In thousands)

Noncontrolling

Accumulated Deficit

Aimco Predecessor Equity

Balances at December 31, 2019

Net income attributable to Aimco Predecessor

Net income attributable to noncontrolling interests in consolidated partnerships

Net income attributable to Common noncontrolling interests in Aimco Operating Partnership

Contributions from Aimco Predecessor, net

Balances at June 30, 2020

Balances at December 31, 2020

Redemption of Aimco Operating Partnership units

Cash paid on redemption of Aimco Operating Partnership units

Issuance of common stock in connection with share-base arrangements

Share-based compensation expense

Distribution to noncontrolling interest in consolidated real estate partnerships

Net income attributable to noncontrolling interest in consolidated real estate

Net income attributable to to common noncontrolling interests in Aimco Operating Partnership

Net income attributable to Aimco common stockholders

Balances at March 31, 2021

Balances at June 30, 2021

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Income from unconsolidated real estate partnerships

Unrealized (gains) on interest rate options

Unrealized (gains) losses on interest rate options

Income tax benefit

12 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from construction loans

Payments of deferred loan costs

Principal repayments on non-recourse property debt

3 unchanged sentences

Other financing activities

Net cash used in financing activities

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

Net cash provided by (used in) financing activities

NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD

Capital expenditures is net of accrued capital costs of $ 14.5 million and $ 0.9 million for the three months ended March 31, 2021 and 2020, respectively.

Capital expenditures net of accrued capital costs of $ 17.1 million and $ 0.8 million for the six months ended June 30, 2021 and 2020, respectively.

See notes to condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

March 31, 2021

December 31, 2020

Buildings and improvements

9 unchanged sentences

Non-recourse property debt, net

Construction loans, net

Notes payable to AIR

17 unchanged sentences

(In thousands, except per unit data)

Three Months Ended March 31,

Three Months Ended

Six Months Ended

Rental and other property revenues

6 unchanged sentences

Mezzanine investment income, net

Unrealized gains on interest rate options

Unrealized gains (losses) on interest rate options

Other expenses, net

Income before income tax benefit

(Loss) Income before income tax benefit

Income tax benefit

Net loss attributable to redeemable noncontrolling interest in

consolidated real estate partnerships

Net (loss) income

Net (income) loss attributable to redeemable noncontrolling

interest in consolidated real estate partnership

Net (income) loss attributable to noncontrolling interests in

consolidated real estate partnerships

Net income attributable to the Aimco Operating

Net (loss) income attributable to the Aimco Operating

Partnership’s common unitholders

Net income attributable to the Aimco Operating

Net (loss) income attributable to the Aimco Operating

Partnership per common unit – basic

Net income attributable to the Aimco Operating

Net (loss) income attributable to the Aimco Operating

Partnership per common unit – diluted

4 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

For the Three Months Ended March 31, 2021 and 2020

For the Three Months Ended June 30, 2021 and 2020

(In thousands)

7 unchanged sentences

Total Partners’

Balances at December 31, 2019

Balances at March 31, 2020

Net income attributable to Aimco Predecessor

Net loss attributable to noncontrolling interests in

Net income attributable to noncontrolling interests in

consolidated real estate partnerships

Contributions from Aimco Predecessor, net

Balances at June 30, 2020

Balances at March 31, 2021

Balances at December 31, 2020

Redemption of Aimco Operating Partnership units

Cash paid on redemption of Aimco Operating Partnership units

Share-based compensation expense

3 unchanged sentences

consolidated real estate partnerships

Balances at March 31, 2021

Balances at June 30, 2021

See notes to condensed consolidated financial statements.

AIMCO OP L.P.

CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

For the Six Months Ended June 30, 2021 and 2020

(In thousands)

General Partner

Limited Partner

Limited Partners

Partners’ Capital

Attributable to

Noncontrolling

Aimco Predecessor Capital

Total Partners’

Balances at December 31, 2019

Net income attributable to Aimco Predecessor

Net income attributable to noncontrolling interests in consolidated real estate partnerships

Contributions from Aimco Predecessor, net

Balances at June 30, 2020

Balances at December 31, 2020

Redemption of Aimco Operating Partnership units

Cash paid on redemption of Operating Partnership units

Issuance of common stock in connection with share-base arrangements

Share-based compensation expense

Distribution to noncontrolling interest in consolidated

real estate partnerships

Net income attributable to noncontrolling interests in

consolidated real estate partnerships

Balances at June 30, 2021

See notes to condensed consolidated financial statements.

AIMCO OP L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Income from unconsolidated real estate partnerships

Unrealized (gains) on interest rate options

Unrealized (gains) losses on interest rate options

Income tax benefit

12 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from construction loans

Payments of deferred loan costs

Principal repayments on non-recourse property debt

3 unchanged sentences

Other financing activities

Net cash used in financing activities

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

Net cash provided by (used in) financing activities

NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD

Capital expenditures in net of accrued capital costs of $ 14.5 million and $ 0.9 million for the three months ended March 31, 2021 and 2020, respectively.

Capital expenditures net of accrued capital costs of $ 17.1 million and $ 0.8 million for the six months ended June 30, 2021 and 2020, respectively.

See notes to condensed consolidated financial statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021

June 30, 2021

Note 1 — Organization

7 unchanged sentences

P rior to the Separation, the condensed consolidated financial statements were prepared on a carve-out basis and reflect significant assumptions and allocations.

The condensed consolidated financial statements reflect our historical consolidated financial position, results of operations, and cash flows in conformity with U.S.

The condensed consolidated financial statements reflect our historical consolidated financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States (“GAAP”).

The historical financial statements of Aimco do not represent the financial position and results of operations of one legal entity, but r ather a combination of entities under common control that have been “carved out” from Aimco Predecessor’s financial statements.

1 unchanged sentence

All separation related transactions between Aimco and Aimco Predecessor are considered effectively settled through partners’ capital in our condensed consolidated financial statements, other than the notes payable to AIR as discussed in Note 3.

The settlement of these transactions is reflected as contributions from Aimco Predecessor, net in our condensed consolidated statements of equity and partners’ capital and net change in Aimco Predecessor investment in our condensed consolidated statements of cash flows as financing activities.

As of March 31, 2021, Aimco owned approximately 93.3 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.9 % of the economic interest in Aimco Operating Partnership.

The settlement of these transactions is reflected as contributions from Aimco Predecessor, net in our condensed consolidated statements of equity and partners’ capital and as a net change in Aimco Predecessor investment in financing activity in our condensed consolidated statements of cash flows.

As of June 30, 2021, Aimco owned 93.6 % of the legal interest in the common partnership units of Aimco Operating Partnership and 94.9 % of the economic interest in Aimco Operating Partnership.

The remaining 6.4 % legal interest is owned by limited partners.

4 unchanged sentences

one commercial office building owned as part of a land assemblage;

two residential apartment communities, with 1,055 planned apartment homes, and one hotel, with 106 planned rooms, that we are actively developing and redeveloping;

one residential apartment community, currently with 275 apartment homes, in redevelopment planning;

three residential apartment communities, with 1,331 planned apartment homes, a single family rental community, with 16 planned homes plus 8 accessory dwelling units, and one hotel, with 106 planned rooms, that we are actively developing or redeveloping;

land parcels held for development;

and three residential apartment communities, with 499 apartment homes, for which we have completed the redevelopment and are in lease-up, but have not achieved stabilization.

In addition, we own an interest in four unconsolidated operating apartment communities.

Note 2 — Basis of Presentation and Summary of Significant Accounting Policies

1 unchanged sentence

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and

regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading.

In the opinion of management, all adjustments , consisting of normal recurring items , considered necessary for a fair presentation have been included.

Operating results for the three months ended March 31, 2021 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 .

Operating results for the three and six months ended June 30, 2021 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 .

The condensed consolidated balance sheets of Aimco and Aimco Operating Partnership as of December 31, 2020, have been derived from their respective audited financial statements at that date, but do not include all of the information and disclosures required by GAAP for complete financial statements.

5 unchanged sentences

All significant intercompany balances and transactions have been eliminated in consolidation.

We consolidate a variable interest entity, or VIE, in which we are considered the primary beneficiary.

We consolidate a variable interest entity (“VIE”) in which we are considered the primary beneficiary.

The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.

7 unchanged sentences

Common Noncontrolling Interests in Aimco Operating Partnership

Common noncontrolling interests in Aimco Operating Partnership consist of common OP Units and are reflected in Aimco’s accompanying condensed consolidated balance sheets as common noncontrolling interests in Aimco Operating Partnership.

Common noncontrolling interests in Aimco Operating Partnership consist of common Aimco Operating Partnership Units (“OP Units”) and are reflected in Aimco’s accompanying condensed consolidated balance sheets as common noncontrolling interests in Aimco Operating Partnership.

Aimco Operating Partnership’s income or loss is allocated to the holders of common OP Units, other than Aimco, based on the weighted-average number of common OP Units (including Aimco) outstanding during the period.

For the three months ended March 31, 2021 and 2020, the holders of common OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of 5.1 % .

For the three and six months ended June 30, 2021 and 2020, the holders of common OP Units had a weighted-average economic ownership interest in Aimco Operating Partnership of 5.1 % and 5.0 % respectively.

Substantially all of the assets and liabilities of Aimco are held by Aimco Operating Partnership.

4 unchanged sentences

If the redemption right is not currently redeemable but probable of being redeemable in the future, changes in redemption value are recognized each quarter with the change in value being reflected in additional paid-in-capital.

The assets of our consolidated real estate partnership s must first be used to settle the liabilities of the consolidated real estate partnership s .

The assets of our consolidated real estate partnerships must first be used to settle the liabilities of the consolidated real estate partnerships.

The consolidated real estate partnerships’ creditors do not have recourse to the general credit of Aimco Operating Partnership.

The following table presents a reconciliation of our redeemable noncontrolling interest in consolidated real estate partnership from December 31, 2020, to March 31, 2021 (in thousands):

The following table presents a reconciliation of our redeemable noncontrolling interest in consolidated real estate partnership from December 31, 2020, to June 30, 2021 (in thousands):

Balance at December 31, 2020

Balance at March 31, 2021

Balance at June 30, 2021

Revenue from Leases

1 unchanged sentence

We receive variable payments from our residents and commercial tenants primarily for utility reimbursements and other services.

For the three months ended March 31, 2021 and 2020, our total lease income was comprised of the following amounts for all operating leases (in thousands):

Three Months Ended March 31,

For the three and six months ended June 30, 2021 and 2020, our total lease income was comprised of the following amounts for all operating leases (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Fixed lease income

2 unchanged sentences

Lessee Arrangements

During the three months ended March 31, 2021, we, as lessee, and AIR, as lessor, entered into finance leases on four properties currently under construction or in lease-up.

The life of three of the leases is 25 years and one lease is for 10 years.

Each lease commenced January 1, 2021 and two of the leases have rent escalations which start at the point the property reaches stabilization.

We have provided AIR with residual value guarantees aggregating to $ 244.7 which provide that if the residual value of the leased assets are less than the specified residual value guarantees at the earlier of lease expiration or termination, we are required to pay the difference.

We, as lessee, and AIR, as lessor, have entered into finance leases on five properties currently under construction or in lease-up.

Four leases commenced January 1, 2021 , two of which have rent escalations that start at the point the property reaches stabilization.

The term of three of the leases is 25 years and one lease is for 10 years.

During the three months ended June 30, 2021, we, as lessee, and AIR, as lessor, entered into a finance lease for a 15 -acre plot of land in the San Francisco Bay Area on which we began construction of 16 single family rental homes and 8 accessory dwelling units.

The lease commenced on June 1, 2021 and has a term of 25 years.

We recorded a right-of-use asset in the amount of $ 4.7 million and a corresponding lease liability of $ 4.7 million.

We have provided AIR with residual value guarantees aggregating to $ 250.8 million, which provide that if the residual value of the leased assets are less than the specified residual value guarantees at the earlier of lease expiration or termination, we are required to pay the difference.

See Note 3 for further details.

As of March 31, 2021, operating and financing right-of-use lease assets of $ 5.4 million and $ 437.7 million, respectively, are included in the condensed consolidated balance sheets.

For the three months ended March 31, 2021, amortization expense and interest expense related to our finance leases was $ 1.3 million and $ 1.7 million, respectively, net of capitalized costs.

As of March 31, 2021, Aimco’s operating leases and financing leases have weighted-average remaining terms of 8.2 years, and 38.7 years, respectively, and weighted-average discount rates of 3.2 % and 5.4 %, respectively.

As of June 30, 2021, operating and financing right-of-use lease assets of $ 5.3 million and $ 438.2 million, respectively, are included in the condensed consolidated balance sheets.

For the three months and six months ended June 30, 2021, amortization related to our finance leases was $ 2.1 million and $ 3.4 million, respectively, net of amounts capitalized.

For the three months and six months ended June 30, 2021, interest expense related to our finance leases was $ 1.7 million and $ 3.9 million, respectively.

As of June 30, 2021, Aimco’s operating leases and financing leases have weighted-average remaining terms of 8.2 years, and 38.5 years, respectively, and weighted-average discount rates of 3.2 % and 5.3 %, respectively.

Combined minimum annual lease payments, under operating and financing leases, reconciled to the lease liabilities in our condensed consolidated balance sheets, are as follows (in thousands):

4 unchanged sentences

Total lease liabilities

For the three months ended March 31, 2021 , we capitalized $ 6.9 million of lease costs associated with active development and redevelopment projects on certain of the underlying property and ground lease assets.

No lease costs were capitalized on leased assets for the three months ended March 31, 2020.

For the three and six months ended June 30, 2021 , we capitalized $ 5.8 million and $ 12.7 million of lease costs associated with active development and redevelopment projects on certain of the underlying property and ground lease assets.

No lease costs were capitalized on leased assets for the three and six months ended June 30, 2020.

Mezzanine Investment

On November 26, 2019, Aimco Predecessor made a five-year , $ 275.0 million mezzanine loan to Maximus PM Mezzanine A LLC, the partnership owning the “Parkmerced Apartments”, located in southwest San Francisco (the “Mezzanine Investment”).

On November 26, 2019, Aimco made a five-year , $ 275.0 million mezzanine loan to Maximus PM Mezzanine A LLC, the partnership owning the “Parkmerced Apartments”, located in southwest San Francisco (the “Mezzanine Investment”).

The loan bears interest at a 10 % annual rate, accruing if not paid from property operations.

The Separation Agreement provides for AIR to transfer ownership of the subsidiaries that originated and hold the mezzanine loan, a related equity option to acquire a 30 % interest in the partnership owning Parkmerced Apartments and the interest rate option, or swaption, that provides partial protection against future refinancing risk through 2024 to Aimco.

At the time of the Separation and as of May 17, 2021 , legal title of these subsidiaries had not yet transferred to Aimco.

At the time of the Separation and as of the date of this filing , legal title of these subsidiaries had not yet transferred to Aimco.

Until legal title of the subsidiaries is transferred, AIR is obligated to pass payments on such loan to us, and we are obligated to indemnify AIR against any costs and expenses related thereto.

1 unchanged sentence

We recognize as income the net amounts recognized by AIR on its equity investment that are due to be paid to us when collected, which primarily represent the interest accrued under the terms of the underlying mezzanine loan.

As of March 31, 2021 , the Mezzanine Investment in our condensed consolidated balance sheets represents the assets associated with our indirect interest in the subsidiary that owns Parkmerced Apartments, which we do not consolidate.

As of June 30, 2021 , the Mezzanine Investment in our condensed consolidated balance sheets represents the assets associated with our indirect interest in the subsidiary that owns Parkmerced Apartments, which we do not consolidate.

The loan is subject to certain risks, including, but not limited to, those resulting from the severe downturn in San Francisco rents, the ongoing disruption due to the COVID-19 pandemic and associated governmental response, and the current economic situation, which may result in all or a portion of the loan not being repaid.

1 unchanged sentence

Income Tax Benefit

For the three months ended March 31, 2021, $ 2.7 million of the income tax benefit is related to internal restructuring completed in the first quarter and changes to our effective state rate expected to apply to the reversal of our existing deferred items.

Certain of our operations, including our Development and Redevelopment activities, are conducted through taxable REIT subsidiaries, or TRS entities.

Additionally, our TRS entities hold investments in one of our apartment communities and 1001 Brickell Bay Drive.

Our income tax benefit calculated in accordance with GAAP includes income taxes associated with the income or loss of our TRS entities.

Income taxes, as well as changes in valuation allowance and incremental deferred tax items in conjunction with intercompany asset transfers and internal restructurings (if applicable), are included in income tax benefit in our condensed consolidated statements of operations.

Consolidated GAAP income or loss subject to tax consists of pretax income or loss of our taxable entities and gains retained by the REIT.

For the three and six months ended June 30, 2021, we had consolidated net losses subject to tax of $ 9.0 million and $ 18.5 million, respectively.

For the three and six months ended June 30, 2020, we had consolidated net income subject to tax of $ 4.4 million and $ 8.8 million, respectively.

For the three months ended June 30, 2021, we recognized income tax benefit of $ 2.8 million compared to $ 2.0 million, during the same period ended 2020.

The change is due primarily to higher losses at our TRS entities.

For the six months ended June 30, 2021, we recorded $ 7.9 million, compared to $ 4.1 million during the same period ended 2020.

The change is due primarily to income tax benefit associated with internal restructuring, changes to our effective state rate expected to apply to the reversal of our existing deferred items, and higher losses at our TRS entities.

Use of Estimates

9 unchanged sentences

Other assets were comprised of the following amounts (in thousands):

March 31, 2021

June 30, 2021

December 31, 2020

9 unchanged sentences

Accounts receivable, net of allowances of $ 1,473 and $ 1,467 as of

March 31, 2021 and December 31, 2020, respectively

June 30, 2021 and December 31, 2020, respectively

Total other assets, net

Note 3 — Transactions with AIR

Note 3 —Significant Transactions

Transactions with AIR

In conjunction with the Separation, we entered into various separation and transition services agreements with AIR that provide for a framework of our relationship with AIR after the Separation, including:

(i) a separation agreement setting forth the mechanics of the Separation, the key provisions relating to the separation of our assets and liabilities from those of AIR, and certain organizational matters and conditions;

(ii) an Employee Matters Agreement to allocate liabilities and responsibilities relating to employment matters, employee compensation, benefits plans and programs, and other related matters;

(ii) an employee matters agreement to allocate liabilities and responsibilities relating to employment matters, employee compensation, benefits plans and programs, and other related matters (the “Employee Matters Agreement”);

(iii) agreements pursuant to which AIR will provide property management and related services to us (collectively, the “Property Management Agreements”);

5 unchanged sentences

We may terminate any or all services on 60 days’ prior written notice, and AIR may terminate individual services, at any time after December 31, 2023.

During the three months ended March 31, 2021, we incurred administrative and support fees of $ 0.4 million, which is included in general and administrative expenses in our condensed consolidated statements of operations.

We did no t incur any fees for the three months ended March 31, 2020.

During the three and six months ended June 30, 2021, we incurred administrative and support fees of $ 0.4 million and $ 0.8 million, respectively, which are included in general and administrative expenses in our condensed consolidated statements of operations.

We did no t incur any fees for the three and six months ended June 30, 2020.

Property Management Agreements

2 unchanged sentences

Neither party is obligated to pay to the other party a termination fee or other penalty upon such termination.

During the three months ended March 31, 2021, we recorded property management and property accounting fees of $ 1.3 million, which is included in property operating expenses in our condensed consolidated statements of operations.

We did no t incur any fees for the three months ended March 31, 2020.

During the three and six months ended June 30, 2021, we recorded property management and property accounting fees of $ 1.3 million and $ 2.6 million, respectively, which we included in property operating expenses in our condensed consolidated statements of operations.

We did no t incur any fees for the three and six months ended June 30, 2020.

Notes Payable to AIR

On December 14, 2020, we entered into $ 534.1 million of notes payable to AIR that are secured by a pledge of the equity interest in the entity that holds a portfolio of assets, however, the assets secure existing senior loans of $ 198.3 million as of March 31, 2021.

The notes mature on January 31, 2024 and bear interest at 5.2 %, with accrued interest payable quarterly on January 1, April 1, July 1 and October 1, commencing on April 1, 2021.

For the three months ended March 31, 2021, we recognized interest expense of $ 6.9 million associated with the notes payable to AIR.

For the three and six months ended June 30, 2021, we recognized interest expense of $ 6.9 million and $ 13.9 million, respectively associated with the notes payable to AIR.

We made interest payments of $ 6.9 million in the quarter which are included in interest payments on notes payable to AIR in operating activities in the condensed consolidated statement of cash flows for the six months ended June 30, 2021

Master Leasing Agreement

8 unchanged sentences

If AIR elects not to pay the fee for the development or redevelopment-related improvements, and we decline to purchase the property or cause its sale to a third party, we may elect to rescind our termination of the applicable lease and instead continue such lease in effect in accordance with its terms.

We, as lessee, and AIR, as lessor, entered into leases of four properties currently under construction or in lease-up.

The four properties include (i) North Tower at Flamingo Point in Miami Beach, Florida, (ii) The Fremont Residences on the Anschutz Medical Campus in Aurora, Colorado, (iii) Prism in Cambridge, Massachusetts, and (iv) 707 Leahy Apartments in Redwood City, California.

According to the terms of the lease agreements, we had the option to complete the on-going development and redevelopment of such properties and their lease-ups, which we elected on January 1, 2021.

The life of each lease is 25 years except for Prism, which has a lease term of 10 years .

Each l ease commenc e d on January 1, 2021 .

We, as lessee, and AIR, as lessor, have entered into leases of five properties currently under construction or in lease-up.

Four of the property leases commenced on January 1, 2021:

(i) North Tower at Flamingo Point in Miami Beach, Florida, (ii) The Fremont Residences on the Anschutz Medical Campus in Aurora, Colorado, (iii) Prism in Cambridge, Massachusetts (“Prism”), and (iv) 707 Leahy Apartments in Redwood City, California.

According to the terms of the respective lease agreements, we had the option to complete the on-going development and redevelopment of such properties and their lease-ups, which we elected on January 1, 2021 .

The term of each lease is 25 years except for Prism, which has a lease term of 10 years.

During the three months ended June 30, 2021, we, as lessee, and AIR, as lessor, entered into a 25 year finance lease for a 15 -acre plot of land in the San Francisco Bay Area on which we began construction of 16 single family rental homes and 8 accessory dwelling units in June 2021.

Initial monthly lease payments approximate $ 2.2 million with aggregate total lease payments of approximately $ 621.1 million.

The initial fair market values of the leased assets at the time of lease inception was determined to be $ 475.1 million in the aggregate.

In connection with the commencement of the leases, we assume d $ 70.8 million of estimated obligations pursuant to certain construction contracts .

In February 2021, we acquired The Benson Hotel and Faculty Club (“Benson Hotel”) development property for $ 6.2 million, net of outstanding construction liabilities of $ 0.9 million.

The development property consists of land and initial construction costs.

The project is expected to be completed in the first quarter of 2023.

In connection with the commencement of the leases, we assumed $ 70.8 million of estimated obligations pursuant to certain construction contracts.

As of June 30, 2021, the estimated obligations pursuant to the construction contracts associated with these leases was $ 65.7 million.

Due to and from AIR

As of March 31, 2021, we have amounts due to and due from AIR of $ 23.9 million and $ 24.0 million, respectively.

The amounts due to AIR primarily consist of invoices paid on our behalf and accrued interest on the notes payable to AIR.

The amounts due from AIR primarily consists of net cash flows generated by our operating properties.

Terry Considine Service Arrangement

In conjunction with the Separation, the Company entered into an arrangement with AIR with respect to the services of Terry Considine, an Aimco board member and our former Chief Executive Officer, for services to be rendered by Mr.

As of June 30, 2021, we have amounts due to and from AIR of $ 16.9 million and $ 2.1 million, respectively.

The amounts due to AIR primarily consist of invoices paid on our behalf and accrued interest on the n otes payable to AIR.

The amounts due from AIR primarily consist of net cash flows generated by our operating properties.

Terry Considine Service Agreement

In conjunction with the Separation, we entered into an arrangement with AIR with respect to the services of Terry Considine, an Aimco board member and our former Chief Executive Officer, for services to be rendered by Mr.

Considine separate from his services as a board member, including, but not limited to (i) short and long term strategic direction and advice;

1 unchanged sentence

(iii) advice and consultation with respect to strategic growth and acquisition activities.

The Company is obligated to reimburse AIR for all base salary, short-term incentive amounts and long-term incentive amounts payable by AIR to Mr.

We are obligated to reimburse AIR for all base salary, short-term incentive amounts and long-term incentive amounts payable by AIR to Mr.

Considine for the calendar year 2021 under the terms of his employment agreement with AIR that are in excess of $ 1 million, collectively.

For the three months ended March 31, 2021, we have recorded $ 1.45 million in associated service fees in general and administrative expenses in our condensed consolidated statements of operations.

As of March 31, 2021, accrued service fees of $ 1.45 million are included in accrued liabilities and other and in our condensed consolidated balance sheets.

For the three and six months ended June 30, 2021, we have recorded $ 1.45 million and $ 2.9 million, respectively, in associated service fees in general and administrative expenses in our condensed consolidated statements of operations.

As of June 30, 2021, accrued service fees of $ 2.9 million are included in accrued liabilities and other in our condensed consolidated balance sheets.

Guarantee Liability

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The guarantee liability is systematically reduced as costs related to the legal liabilities are incurred, which we estimate will occur through 2023.

For the three months ended March 31, 2021, the guarantee liability was reduced by $ 1.3 million.

As of March 31, 2021, the guarantee liability of $ 15.1 million is included in accrued liabilities and other in our condensed consolidated balance sheets.

For the six months ended June 30, 2021, the guarantee liability was reduced by $ 2.5 million.

As of June 30, 2021, the guarantee liability of $ 13.9 million is included in accrued liabilities and other in our condensed consolidated balance sheets.

In February 2021, we acquired The Benson Hotel and Faculty Club (“The Benson Hotel”) development property for $ 6.2 million, net of outstanding construction liabilities of $ 0.9 million.

The development property consists of land and initial construction costs.

The project is expected to be completed in the first quarter of 2023.

Other Significant Transactions

Construction Loans

On April 15, 2021, we entered into a $ 150 million variable-rate non-recourse construction loan collateralized by our leasehold interest and AIR’s fee ownership interest in Flamingo North Tower.

The initial term of the loan is three years and bears interest at one month LIBOR plus 360 basis points subject to a minimum all-in per annum interest rate of 3.85 %.

As of June 30, 2021, we had $ 107.9 million of principal outstanding.

Certain consolidated subsidiaries have indemnified AIR for any losses it incurs as a result of a default on the loan by Aimco.

We recorded $ 3.8 million of deferred financing costs which will be amortized over the three year term of the loan.

On June 21, 2021, we entered into a $ 100.7 million variable-rate non-recourse construction loan collateralized by our fee ownership interest in Hamilton on the Bay.

The initial term of the loan is three years and bears interest at one month LIBOR plus 320 basis points subject to a minimum all-in per annum interest rate of 3.45%.

As of June 30, 2021, we had $ 12.2 million of principal outstanding.

We recorded $ 2.3 million of deferred financing costs which will be amortized over the three year term of the loan.

If LIBOR ceases to exist during the term of these agreements, the documents associated with these agreements contain language to address a transition to another bench mark rate.

It is anticipated LIBOR will be replaced with SOFR, however, if SOFR were to not be available the agreements contain alternate provisions.

During the three months ended June 30, 2021, we acquired six land parcels adjacent to our Hamilton on the Bay apartment community, located in Miami’s Edgewater neighborhood, for $ 12.0 million and we began major redevelopment of the existing apartment building at Hamilton on the Bay.

The scope of our investment will completely renew the waterfront high-rise which benefits from spacious apartment homes (averaging 1,411 square feet) and an abundance of outdoor and amenity space that was previously underutilized.

Subsequent to June 30, 2021, we acquired an additional two parcels for $ 7 million.

In February 2021, we acquired The Benson Hotel and Faculty Club (“The Benson Hotel ”) development property for $ 6.2 million, net of outstanding construction liabilities of $ 0.9 million.

The development property consists of land and initial construction costs.

The project is expected to be completed in the first quarter of 2023 .

Note 4 — Commitments and Contingencies

In connection with our development, redevelopment, and other capital additions activities, we have entered into various construction-related contracts and we have made commitments to complete development and redevelopment of certain real estate, pursuant to financing or other arrangements.

As of March 31, 2021, our commitments related to these capital activities totaled approximately $ 266.4 million most of which we expect to incur during the next 12 months.

As of June 30, 2021, our commitments related to these capital activities totaled approximately $ 335.2 million, most of which we expect to incur during the next 24 months.

We enter into certain commitments for future purchases of goods and services in connection with the operations of our apartment communities.

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We have a commitment to fund an additional $ 37.5 million to IQHQ and currently expect to incur this investment over the next two years.

We also have unfunded commitments related to three investments in privately held entities that develop technology related to the real estate industry (“RETV”) in the amount of $ 1.1 million, the timing of which is uncertain.

We also have unfunded commitments related to three investments in privately held entities that develop technology related to the real estate industry (“RETV”).

During the six months ended June 30, 2021, we contributed $ 0.1 million, leaving an additional funding commitment in the amount of $ 1.0 million, the timing of which is uncertain.

Legal Matters

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Note 5 — Earnings and Dividends per Share and Unit

Aimco and Aimco Operating Partnership calculate basic earnings per common share and basic earnings per common unit based on the weighted-average number of shares of common stock and common partnership units outstanding.

We calculate diluted earnings per share and diluted earnings per unit taking into consideration dilutive common stock and common partnership unit equivalents and dilutive convertible securities outstanding during the period.

The common shares and common partnership units outstanding at the Separation date are reflected as outstanding for all periods prior to the Separation for purposes of determining earnings per share and per unit.

Our common stock and common partnership unit equivalents include options to purchase shares of Common Stock, which, if exercised, would result in Aimco’s issuance of additional shares and Aimco Operating Partnership’s issuance to Aimco of additional common partnership units equal to the number of shares purchased under the options.

Aimco and Aimco Operating Partnership calculate basic earnings per share of common stock and basic earnings per common unit based on the weighted-average number of shares of common stock and common partnership units outstanding.

We calculate diluted earnings per share of common stock and diluted earnings per unit taking into consideration dilutive shares of common stock and common partnership unit equivalents and dilutive convertible securities outstanding during the period.

The shares of common stock and common partnership units outstanding at the Separation date are reflected as outstanding for all periods prior to the Separation for purposes of determining earnings per share and per unit.

Each of our executives and AIR’s executives received one share of AIV stock and one share of AIR stock at Separation date for unvested shares.

We include AIR’s executives’ rights to receive AIV shares upon vesting in our dilutive calculations.

Our common stock and common partnership unit equivalents include options to purchase shares of common stock, which, if exercised, would result in Aimco’s issuance of additional shares of common stock and Aimco Operating Partnership’s issuance to Aimco of additional common partnership units equal to the number of shares of common stock purchased under the options.

These equivalents also include unvested TSR restricted stock awards that do not meet the definition of participating securities, which would result in an increase in the number of shares of common stock and common partnership units outstanding equal to the number of the shares that vest.

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We include the effect of participating securities in basic and diluted earnings per share and unit computations using the two-class method of allocating distributed and undistributed earnings when the two-class method is more dilutive than the treasury stock method.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three months ended March 31, 2021 and 2020, are as follows (in thousands, except per share and per unit data):

Three Months Ended March 31,

No such items were included in the computation of diluted loss per share for the three months ended June 30, 2021 because the effect of inclusion would be anti-dilutive.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the three and six months ended June 30, 2021 and 2020, are as follows (in thousands, except per share and per unit data):

Three Months Ended June 30,

Six Months Ended June 30,

Earnings per share

Net income attributable to Aimco common stockholders

Net (loss) income attributable to Aimco common stockholders

Denominator – shares:

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Earnings per unit

Net income attributable to Aimco Operating Partnership's common unitholders

Net (loss) income attributable to Aimco Operating Partnership's common unitholders

Denominator – units

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In 2020, we paid an upfront premium of $ 12.1 million for the option to enter into an interest rate swap at a future date.

This interest rate option, or swaption, provides partial protection against our refinancing interest rate risk and is intended to mitigate interest rate increases between now and October 2024.

This interest rate option, or swaption, provides partial protection against exposure to rising interest rates between now and October 2024.

We receive a cash settlement in the future if the prevailing interest rate is higher than the 1.68 % five year swap strike price.

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Alternatively, if interest rates were to decrease below the specified strike price, we would not receive a cash settlement.

During the three months ended March 31, 2021, we paid an upfront premium of $ 5.6 million (including transaction costs) for the option to enter into an interest rate swap at a future date.

During the six months ended June 30, 2021, we paid an upfront premium of $ 5.6 million (including transaction costs) for the option to enter into an interest rate swap at a future date.

This interest rate option, or swaption, provides partial protection against our refinancing interest rate risk relative to our notes payable to AIR and is intended to mitigate interest rate increases between now and January 2024.

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Alternatively, if interest rates were to decrease below the specified strike price, we would not receive a cash settlement.

From time to time we purchase interest rate caps to provide protection against increases in interest rates on our floating rate debt.

The fair value of these interest rate caps are included in the fair value table below.

We measure at fair value on a recurring basis our interest rate options, which are presented in other assets in our condensed consolidated balance sheets.

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Changes in fair value are reflected as a non-cash transaction in adjustments to arrive at cash flows from operations, and the upfront premium is reflected in purchase of interest rate option in our condensed consolidated statements of cash flows.

We have investments of $ 2.3 million in RETV consisting of three privately held entities that develop technology related to the real estate industry.

These investments are measured at net asset value (“NAV”) as a practical expedient.

We have investments of $ 3.3 million in RET V consisting of three privately held entities that develop technology related to the real estate industry.

These investments are measured at net asset value (“NAV”) as a practical expedien t .

The following table summarizes fair value for our interest rate options and our investment in RETV (in thousands):

As of March 31, 2021

As of June 30, 2021

As of December 31, 2020

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Fair Value Disclosures

We believe that the carrying value of the consolidated amounts of cash and cash equivalents, restricted cash, accounts receivable and payables approximated their fair value as of March 31, 2021, and December 31, 2020, due to their relatively short-term nature and high probability of realization.

We estimate the fair value of our non-recourse property debt and notes payable to AIR using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, contractual interest rates, remaining periods to maturity, debt service coverage ratios, and loan to value ratios.

We classify the fair value of our non-recourse property debt within Level 2 of the GAAP fair value hierarchy based on the significance of certain of the unobservable inputs used to estimate its fair value.

The carrying amount of the notes payable to AIR approximated their fair value at both March 31, 2021 and December 31, 2020.

The following table summarizes carrying value and fair value for our non-recourse property debt (in thousands):

As of March 31, 2021

We believe that the carrying value of the consolidated amounts of cash and cash equivalents, restricted cash, accounts receivable and payables approximated their fair value as of June 30, 2021, and December 31, 2020, due to their relatively short-term nature and high probability of realization.

We estimate the fair value of our non-recourse property debt, construction loans, and notes payable to AIR using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, contractual interest rates, remaining periods to maturity, debt service coverage ratios, and loan to value ratios.

We classify the fair value of our non-recourse property debt and construction loans debt within Level 2 of the GAAP fair value hierarchy based on the significance of certain of the unobservable inputs used to estimate its fair value.

The carrying amount of the notes payable to AIR approximated their fair value at both June 30, 2021 and December 31, 2020.

The following table summarizes carrying value and fair value for our non-recourse property debt and construction loans debt (in thousands):

As of June 30, 2021

As of December 31, 2020

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Non-recourse property debt

Construction loans debt

Note 7 — Variable Interest Entities

Consolidated Entities

Aimco consolidates Aimco Operating Partnership, a variable interest entity (“VIE”) of which Aimco is the primary beneficiary.

Aimco consolidates Aimco Operating Partnership, a VIE of which Aimco is the primary beneficiary.

Aimco, through Aimco Operating Partnership, consolidates all VIEs for which it is the primary beneficiary.

Substantially all of the assets and liabilities of Aimco are that of Aimco Operating Partnership.

The VIEs that Aimco Operating Partnership consolidates owns interests in real estate.

The VIEs that Aimco Operating Partnership consolidate s own interests in real estate.

We are the primary beneficiary of the VIEs because we have the power to direct the activities that most significantly impact the entities’ economic performance and have a substantial economic interest.

We have six unconsolidated VIEs for which we are not the primary beneficiary because we are not the decision maker.

The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of March 31, 2021 and December 31, 2020 (in thousands, except for VIE count):

March 31, 2021

The details of our consolidated and unconsolidated VIEs, excluding those of Aimco Operating Partnership, are summarized in the table below as of June 30, 2021 and December 31, 2020 (in thousands, except for VIE count):

June 30, 2021

December 31, 2020

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Lease liabilities

Assets of our consolidated VIEs must first be used to settle the liabilities of the VIE.

The consolidated VIEs’ creditors do not have recourse to our general credit.

For the three months ended June 30, 2021, two of our consolidated VIEs closed construction loans.

In conjunction with these loans, we made customary guarantees.

In certain situations, the lenders may have recourse to our general credit.

At June 30, 2021, we estimate the maximum exposure equals the $ 120 million outstanding loan balances.

Other consolidated VIE’s creditors do not have recourse to our general credit.

Unconsolidated Real Estate Partnerships

We own an interest in four apartment communities in San Diego, California, of which we are not the primary beneficiary.

Our investment balance of $ 12.9 million and $ 12.8 million as of March 31, 2021 and December 31, 2020, respectively, represents our maximum exposure to loss in these VIEs.

Our other unconsolidated VIE is insignificant to our condensed consolidated balance sheets for both periods presented.

Our investment balance of $ 13.1 million and $ 12.8 million as of June 30, 2021 and December 31, 2020, respectively, represents our maximum exposure to loss in these VIEs.

One of our other unconsolidated VIE is insignificant to our condensed consolidated balance sheets for both periods presented.

Under the terms of the Separation Agreement, AIR has legally assigned all risks and rewards of ownership in its interest in a partnership that owns Parkmerced Apartments, of which it is not the primary beneficiary.

Our investment balance of $ 314.8 million as of March 31, 2021, reflected in Mezzanine Investment in our condensed consolidated balance sheets, represents our indirect interest in Parkmerced Apartments notes receivable through our agreement with AIR and represents our maximum exposure to loss in this VIE.

Our investment balance of $ 322.4 million as of June 30, 2021, reflected in Mezzanine investment in our condensed consolidated balance sheets, represents our indirect interest in Parkmerced Apartments notes receivable and related accrued interest through our agreement with AIR and represents our maximum exposure to loss in this VIE.

Note 8 — Business Segments

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(i) Development and Redevelopment, (ii) Operating Portfolio, and (iii) Other.

Our Development and Redevelopment segment includes residential apartment communities, including associated commercial space, that are under construction or have not achieved stabilization.

Our Development and Redevelopment segment consists of properties that are under construction or have not achieved stabilization, as well as land assemblages that are being held for development adjacent to our Hamilton on the Bay community.

Our Operating Portfolio segment includes 24 majority owned residential communities that have achieved stabilized level of operations as of January 1, 2020 and maintained it throughout the current year and comparable period.

We aggregate all our apartment communities that have reached stabilization into our Operating Portfolio.

Our Other segment consists of 1001 Brickell Bay Drive, our only commercial real estate property.

Our Other segment consists of properties that are not included in our Developments and Redevelopment or Operating segment.

We realigned our segments during the fourth quarter 2020 and have restated historical periods to conform with current segment presentation.

Our chief operating decision maker (“CODM”) uses cash flow, construction timeline to completion and actual versus budgeted results to evaluate our properties in our Development and R edevelopment segment.

Our CODM uses proportionate property net operating income to assess the operating performance of our Operating Portfolio.

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In our condensed consolidated statements of operations, utility reimbursements are included in rental and other property revenues, in accordance with GAAP.

As of March 31, 2021, our Development and Redevelopment segment includes three real estate investments:

Upton Place, Hamilton on the Bay and The Benson Hotel.

The Development and Redevelopment segment also includes our four leased properties of which, one is under construction and three are in lease-up, but have not achieved stabilization.

As of June 30, 2021, our Development and Redevelopment segment includes four real estate investments:

Upton Place, Hamilton on the Bay, The Benson Hotel, and our land parcels adjacent to our Hamilton on the Bay community.

The Development and Redevelopment segment also includes our five leased properties of which, two are under construction and three are in lease-up but have not achieved stabilization.

Our Operating Portfolio segment includes 24 consolidated apartment communities with 6,067 apartment homes.

Our Other segment includes one office building.

The following tables present the revenues, proportionate property net operating income, and income before income tax benefit of our segments on a proportionate basis, excluding amounts related to our proportionate share of four apartment communities with apartment homes that we neither manage nor consolidate, for the three months ended March 31, 2021 and 2020 (in thousands):

Our Other segment includes 1001 Brickell Bay Drive, our only office building.

The following tables present the revenues, proportionate property net operating income, and income before income tax benefit of our segments on a proportionate basis, excluding amounts related to our proportionate share of four apartment communities with apartment homes that we neither manage nor consolidate, for the three and six months ended June 30, 2021 and 2020 (in thousands):

Development and Redevelopment

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Corporate and

Three months ended March 31, 2021:

Three months ended June 30, 2021:

Rental and other property revenues

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Proportionate property net operating

income (loss)

Other items included in income before

income tax benefit (3)

Income before income tax benefit

Income (loss) before income tax benefit

Development and Redevelopment

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Corporate and

Three months ended March 31, 2020:

Three months ended June 30, 2020:

Rental and other property revenues

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Proportionate property net operating

income (loss)

Other items included in income before

income tax benefit (3)

Income before income tax benefit

Income (loss) before income tax benefit

Development and Redevelopment

Operating Portfolio

Proportionate

Adjustments (1)

Corporate and

Six months ended June 30, 2021:

Rental and other property revenues

Property operating expenses

Other operating expenses not allocated

to segments (2)

Total operating expenses

Proportionate property net operating

income (loss)

Other items included in income before

income tax benefit (3)

Income (loss) before income tax benefit

Development and Redevelopment

Operating Portfolio

Proportionate

Adjustments (1)

Corporate and

Six months ended June 30, 2020:

Rental and other property revenues

Property operating expenses

Other operating expenses not allocated

to segments (2)

Total operating expenses

Proportionate property net operating

income (loss)

Other items included in income before

income tax benefit (3)

Income (loss) before income tax benefit

Represents adjustments for the redeemable noncontrolling interest in consolidated real estate partnership’s share of the results of consolidated communities in our segments, which are included in the related consolidated amounts, but excluded from proportionate property net operating income for our segment evaluation.

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Operating Portfolio

As of March 31, 2021:

As of June 30, 2021:

Buildings and improvements

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Non-recourse property debt, net

In addition to the amounts disclosed in the tables above, the Development and Redevelopment segment right-of-use lease assets and lease liabilities as of March 31, 2021 aggregated to $ 437.7 million and $ 433.5 million, respectively, related to our investments in Upton Place, North Tower of Flamingo Point, 707 Leahy, The Fremont, and Prism.

In addition to the amounts disclosed in the tables above, the Development and Redevelopment segment right-of-use lease assets and lease liabilities as of June 30, 2021 aggregat ed to $ 438.2 million and $ 437.4 million, respectively, related to our investments in Upton Place, North Tower of Flamingo Point, 707 Leahy, The Fremont, Prism , and Robin Drive Land.

As of December 31, 2020, the Development and Redevelopment segment right-of-use lease assets and lease liabilities totaled $ 92.7 million and $ 86.8 million, respectively, related to our investment in Upton Place.

Note 9 – Subsequent Events

On April 15, 2021, the Company entered into a $ 150 million variable-rate non-recourse construction loan collateralized by our leasehold interest and AIR’s fee ownership interest in Flamingo North Tower.

The initial term of the loan is three years and bears interest at LIBOR plus 360 basis points subject to a minimum all-in per annum interest rate of 3.85 %.

Certain consolidated subsidiaries have indemnified AIR for any losses it incurs as a result of a default on the loan by Aimco.

Fort Lauderdale Florida Joint Venture

In July 2021, we entered into a joint venture to purchase three underdeveloped land parcels located in downtown Fort Lauderdale, FL.

The total contract price for the land is $ 49.0 million (of which $ 25.0 million is our 51 % share) and entitlements are in place for the development of approximately three million square feet of multifamily homes and commercial space.

The land purchase is expected to close in January 2022 .

We have paid $ 2.4 million of the $ 25.0 million commitment.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements